EURO Ressources reports earnings for the 2nd quarter and six months ended June 30, 2018 - Seite 2

During the six month period ended June 30, 2018, the Company recognized an unrealized loss following the decrease of the fair value of these marketable securities.  Under IFRS, the loss of €7.3 million was recorded in other comprehensive income.  Under French GAAP, the loss of €1.6 million was recorded in financial expenses in the statement of earnings.

Comments on financial results prepared in accordance with French GAAP for the six month period ended June 30, 2018 compared to the same period in 2017

Under French GAAP and IFRS, revenues were €11.6 million during the six months ended June 30, 2018, a decrease compared to revenues of €13.0 million for the six months ended June 30, 2017.  These revenues were mainly attributable to the Rosebel royalty of €11.42 million compared to €12.85 million during the six months ended June 30, 2017.  The decrease in revenues was due to the combination of three items: the impact of a stronger euro (€1.37 million) and lower gold production of 142,371 ounces in the first six months of 2018 compared to 155,572 ounces in the first six months of 2017 (€1.08 million), partially offset by the impact of a higher average gold price in the first six months of 2018 of US$1,317 per ounce of gold compared to US$1,238 per ounce of gold in the first six months of 2017 (€1.04 million).  Other royalties were €0.15 million from third parties in French Guiana during the first six months of 2018 (first six months of 2017: €0.15 million).

Under French GAAP, operating expenses (excluding amortization expense) for the six months ended June 30, 2018 were €0.45 million compared to €0.52 million during the same period in 2017.  The decrease was mainly due to lower administrative costs and lower taxes in 2018.

The depreciation expense related to intangible assets was €0.20 million during the first half of 2018 compared to €0.29 million during the first six months of 2017.  This decrease was related to a lower gold production and to the increase in Rosebel's gold reserves.

The Company also recorded as an exceptional income a reimbursement of €0.1 million in 2017 by the Government of France of operating taxes paid in prior years.

Financial results include a foreign exchange gain on bank accounts under French GAAP of €0.8 million in the first six months of 2018 compared to a foreign exchange loss on bank accounts and receivables of €1.7 million in the first six months of 2017.  This foreign exchange gain in 2018 compared to a loss in 2017 is mainly due to the weakening of the closing foreign exchange rate of the Euro compared to the American dollar in 2018 compared to a strengthening in 2017.